Account Stated Doctrine: Why Small Businesses Should Issue Written Invoices
March 30, 2022
Unauthorized use and/or duplication of blogposts without express and written permission is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given, and with appropriate and specific direction to the original content.
The author of this post can be reached by phone at 206-693-2718 or by email.
Customers Who Don’t Speak Now May Have to Forever Hold Their Peace
By Stacia Hofmann
Businesses that successfully implement billing and invoicing systems obviously have a financial advantage over those businesses that haphazardly and irregularly bill their customers. But you might be surprised to learn that small businesses that provide clear, understandable invoices to their customers also have a legal advantage compared to those that do not.
Legal Doctrine of Account Stated
In Washington, if a customer is invoiced, and an unreasonably long period of time passes without objection, then the customer loses the right to later dispute the amount due. There is no specific rule for how much time must pass without protest, so what may be unreasonably long for one customer relationship may not be for another. And, if the customer failed to object within a reasonable amount of time because of a mistake or the business’s fraud, then the customer may still dispute the bill.
Email or call me to see if Cornerpoint can help with your questions about risk management practices, including contracts and invoices, to ensure your business gets paid.
This blog is for informational purposes only and is not guaranteed to be correct, complete, or current. The statements on this blog are not intended to be legal advice, should not be relied upon as legal advice, and do not create an attorney-client relationship. If you have a legal question, have filed or are considering filing a lawsuit, have been sued, or have been charged with a crime, you should consult an attorney. Furthermore, statements within original blogpost articles constitute Stacia Hofmann’s opinion, and should not be construed as the opinion of any other person. Judges and other attorneys may disagree with her opinion, and laws change frequently. Neither Stacia Hofmann nor Cornerpoint Law is responsible for the content of any comments posted by visitors. Responsibility for the content of comments belongs to the commenter alone.
